Bitcoin traders are once again stepping into the high-stakes arena of perpetual futures, showing a renewed appetite for risk despite recent market turbulence. Last week’s volatility, which led to a massive unwinding of leveraged long positions, hasn’t deterred investors. In fact, Singapore-based trading firm QCP Capital reports that optimism is making a comeback in the perpetuals market, with open interest and funding rates on the rise across both centralized and decentralized exchanges.
Surge in Open Interest
According to QCP Capital, the cumulative open interest in Bitcoin (BTC) perpetuals worldwide has seen an uptick, increasing from $42.8 billion to $43.6 billion. While this may seem like a modest climb, it signifies a notable rebound in capital inflows. The spike in open interest is particularly intriguing given the recent backdrop of market upheaval, suggesting that investors are regaining their footing and confidence in the market’s potential for growth.
Funding Rates Reflect Optimism
Funding rates, another key indicator of market sentiment, have also been on the rise. On major platforms such as Deribit, annualized funding rates have surged to 13%. This indicates that investors are so bullish on Bitcoin’s prospects that they’re willing to pay a premium to keep their long positions open. “Hyperliquid’s long bias is also climbing back to 57%, up from just 36% last week,” QCP Capital noted. These figures underscore a growing conviction among traders that Bitcoin’s price will continue to ascend, especially as the fourth quarter is historically known for bullish trends.
Resilience Amidst Volatility
Last week’s market activity was anything but stable. Bitcoin’s price took a beating, dropping below $109,000 on Thursday, which triggered over $700 million in liquidations of leveraged long positions—the largest single-day figure in at least six months, according to Coinglass. Despite such a significant sell-off, Bitcoin has since bounced back, trading near $114,000. This recovery highlights the asset’s resilience and the unwavering faith of investors who believe in its long-term potential.
A Balanced Perspective
While the resurgence of leveraged longs paints a positive picture, it’s important to consider the risks involved. The use of leverage amplifies both gains and losses, making it a double-edged sword. Traders entering the market now should be aware of these inherent risks. The recent liquidations serve as a stark reminder of how quickly fortunes can change in the volatile world of cryptocurrency.
Market analysts also warn that while the fourth quarter tends to be bullish, it is not immune to shocks and corrections. External factors such as macroeconomic events, regulatory changes, and technological developments can all impact market dynamics. Therefore, while optimism is currently driving the market, caution should not be thrown to the wind.
Looking Ahead
As we head deeper into the fourth quarter, the spotlight is on Bitcoin. Will the current optimism translate into sustained price growth, or is another bout of volatility lurking around the corner? Only time will tell. For now, traders appear undeterred by recent setbacks, emboldened by the belief that Bitcoin’s bull run is far from over.
In conclusion, the return of leveraged Bitcoin longs highlights a renewed sense of optimism in the market. While this is encouraging for bullish investors, the inherent risks associated with leveraged trading should not be overlooked. As always, a balanced approach, grounded in research and risk management, remains crucial for those navigating the ever-evolving cryptocurrency landscape.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
